Uber has reportedly acquired food delivery startup Postmates in a $2.6 billion deal in an all-stock deal Bloomberg and The New York Times reports.
According to the reports, Uber is expected to merge Postmates with its popular homegrown food delivery app Uber Eats.
Pierre-Dimitri Gore-Coty, the Vice President of Uber Eats, is expected to run the combined delivery business.
Postmates was co-founded by Bastian Lehmann, Sam Street, and Sean Plaice in 2011 and has grown to include a fleet of over 500,000 members and 600,000 merchants across 50 states.
Last month, Uber lost out to European food delivery service Just Eat Takeaway in a deal to buy US-based Grubhub for $7.3 billion.
Founded in 2011, Postmates was one of the first to let customers in the U.S. order meal delivery using a mobile app.
However, competition has intensified in recent years and Postmates has fallen to a distant fourth.
The company said in February 2019 that it had filed paperwork confidentially for an initial public offering but never went public. It raised private capital last year in a deal that valued the business at $2.4 billion.
